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Uber Driver's Employment Status Confirmed By Court

Be mindful of the extra costs and liabilities you may occur ...

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POSTED BY HELEN BEAUMONT ON 25/01/2019 @ 8:00AM

The UK Court of Appeal has heard Uber's appeal and rejected it by a two to one majority. The employment status of three of its drivers has been confirmed ...

Individuals working for businesses like Uber and Deliveroo must have their employment status confirmed regularly!

Individuals working for businesses like Uber and Deliveroo must have their employment status confirmed regularly!

copyright: hfng / 123rf

The company must now treat them as workers for employment rights purposes as the Court of Appeal said that they were entitled to paid holiday leave and national minimum wage.

However, this does not mean that 'workers' are 'employees'. A worker can be a self-employed individual so they may not be paying PAYE via Uber's own payroll.

This case has been of interest to the whole 'gig economy' industry and, apart from Uber, concerns other businesses such as Deliveroo and Pimlico Plumbers. It demonstrates the difficulty in trying to define a 'worker' and decide what rights they should be entitled to.

From now on, employers much be mindful of the extra costs and liabilities they may occur once a workers employment status is confirmed. The extension to off-payroll working rules that come into force in the private sector in 2020 will have an effect, resulting in enhanced compliance and PAYE/NI obligations for some businesses operating in the gig economy space.

There are a number of tasks you should be undertaking right now:

  • Review current arrangements with individuals and assess contracts and working practices with Personal Service Companies

  • Check employment status before hiring

  • Review when contracts are both changed or extended

  • Ensure you manage off-payroll engagements of individual workers

If you'd like to find out more about the employment status of your workers then do give me a call on 01908 774323 or click here to ping me an email and let's see how I can help you.

Until next time ...

HELEN BEAUMONT


PS:

If you're looking to work with an expert tax advisor with a wide range of tax experience, do visit www.essendontax.co.uk to find out more about me and discover how I can help!


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More about Helen Beaumont ...

Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.

Tax Planning can make a considerable difference to your tax liability. Helen’s specialist knowledge in tax planning and experience ensures every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.

When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.